Silverbridge swings to a loss as clients battle to pay for services
The software developer note a net loss of R7.5m to end-June from a profit of R5.9m previously, with three Zimbabwean clients struggling to pay
Software developer Silverbridge swung into a loss in the year to end-June, following the loss of a major contract with Nedbank Insurance and as some clients struggled to pay.
Operating profit fell more than to a loss of R8.4m to end-June, with headline earnings per share falling 228% to 25.85c per share.
The company said it had only added two new customers during a difficult year, with its contract with Nedbank Insurance coming to an end following the completion of its group-wide single platform project.
Some clients had also found it difficult to pay, including three clients in Zimbabwe, it said, adding it was confident that restructuring of contracts and payments was a worthwhile investment.
The company's overall cash position declined to R7m from R13.5m, with Silverbridge remaining debt-free.
Silverbridge, with a market capitalisation of R31m, sees little activity on the JSE, with its share unchanged at 90c on Thursday. The company's share price has lost 25% so far in 2019.